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additional capacity during periods in which part of the operational capacity is not being utilized. The impact of competition on …
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When a firm faces an uncertain demand, it is common to procure supply using some type of option in addition to spot purchases. A typical version of this problem involves capacity being purchased in advance, with a separate payment made that applies only to the part of the capacity that is...
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realization of uncertainty.We show how competition, uncertainty, and the timing of operational decisions influence the strategic … oligopolistic and perfect competition for which pure equilibria are derived. Interestingly, the relative value of operational …
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